Analyst Says Ad Revenues Will Continue to Decline Into 2013 for Viacom Cable Channels — and Offers an Explanation

Sep 11, 2012  •  Post A Comment

Viacom’s cable networks are expected to post advertising declines into the middle of 2013, reports the New York Post, citing a Wall Street analyst.

The current quarter will also likely post lower ad sales, with Pivotal Research analyst Brian Wieser expecting advertising sales at Viacom’s cable networks to slip by 6%, the piece adds.

That decline would come after a 7% decline in ad sales for the cable networks during the second quarter, which ended June 30. Weakness at Nickelodeon, which has been struggling with a ratings decline, is largely to blame.

The drop in ad revenues at Nickelodeon is most likely due to aging programming and competition, according to Pivotal’s research.

“Nickelodeon U.S. operations account for $900 million of ad revenue — a huge portion of Viacom’s $5 billion global ad revenue,” the story notes. “Viacom acknowledged the problem, and CEO Philippe Dauman said in August that more than a dozen new TV series and movies were being developed.”

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